February 12, 2018
SEC ADVISORY ON RETAIL TRADE
The Securities and Exchange Commission has received numerous complaints/reports that there are entities, wholly or partly owned by foreign nationals, engaging in retail trade without the proper registration from the Commission or acting beyond the authority granted in their Articles of Incorporation/Partnership, in violation of Republic Act (RA) No. 8762 Retail Trade Liberalization Act of 2000.
Please be advised that under RA No. 8762, retail trade enterprises with paid-up capital of less than US$2,500,000 are exclusively reserved for Filipino citizens. Full foreign participation is allowed only if any of the following qualifications is met: (a) with paid-up capital of US$2,500,000 or more provided that investments for establishing a store is not less than US$830,000; or (b) specializing in high end or luxury products, provided that the paid-up capital per store is not less than US$250,000. 1
For reference, "retail trade" shall mean any act, occupation or calling of habitually selling direct to the general public merchandise, commodities or goods for consumption.
Section 12 of RA 8762 provides that any person who...
